According to the graph shown, area B represents:
These are the cost and revenue curves associated with a monopolistically competitive firm.
A. profits earned in the short run.
B. consumer surplus.
C. producer surplus.
D. deadweight loss.
D. deadweight loss.
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A firm should never produce any output if
A) P < AVC. B) P < ATC. C) AR < ATC. D) MR < MC.
An example of an explicit cost would be the wages that a business owner pays her employees
a. True b. False Indicate whether the statement is true or false
The "true" costs of inflation to an economy include all of the following except:
A. higher relative prices. B. noise in the price system. C. shoe-leather costs. D. unexpected redistribution of wealth.
If inflation does not adjust rapidly in the short run, then when the Federal Reserve increases the nominal interest rate, the real interest rate in the short run will:
A. not change. B. decrease. C. increase. D. be determined by saving and investment decisions.